In every part of the world businesses and individuals engage in legal income-generating activities outside of government oversight this is popularly known as the informal economy in fact 23% of the global economy is conducted off the books generally facilitated through cash payments that are ten point seven trillion u.s. dollars.
In unreported income and revenues, each year put differently the informal economy is more than twice as big as Japan’s GDP. The informal economy can have harmful impacts on people’s businesses and governments as it may lead to unfavorable working conditions, unfair competitive advantages and less tax revenue to invest in local programs.
Around the world, governments strive to formalize the informal economy some policies are more successful than others.
More recently policymakers have shifted their efforts from strict enforcement and penalties to encourage more digital payments.
Its true shifting from cash to digital payments can shrink the informal economy increasing digital payments by 10 percent each year for five consecutive years…
Survey: Bitcoin won’t kill cash, but digital payments are the future
Card payments are being replaced by digital payments, including Bitcoin. Bitcoin won’t kill cash, according to new research from Deutsche Bank. The survey reveals that, while digital payments, including cryptocurrencies, are estimated to “grow at light speed” over the coming decade.
cash—otherwise known as “the dinosaur”—won’t be going extinct any time soon. Despite the overarching notion that cash use is subsiding, US citizens still love using it. A significant 33% considered cash their favorite means of payment.